A royal commission - Australia's top form of public inquiry - interviewed hundreds of people over eight months.
It found servicemen and women are struggling with bureaucracy and a lack of support after being discharged.
The government has apologised and promised to urgently respond to the report's recommendations.
"It's devastating that Australia has lost more serving and former serving personnel to suicide than it has lost through operations over the last 20 years in Afghanistan and Iraq," Veterans Minister Matt Keogh said.
